Have a huge debt, want to rent but if i do i can't pay my creditors. what should i do

Hully

Dear Anyone.

I have a big debt around my neck of nearly 45k, I am living with my sister for now but really need my own place. I want to rent somewhere but if I do I will not be able to pay my creditors, it one or the other.

I have thought about going BR but i have a legal charge on my ex wifes house, if i do go BR i am worried that they will want that. I cannot get at that money unless one of the triggers is reached, ex wife death, selling, re marrige / living with a partner or children finish UNI. my youngest son is 11 so that could be 10 years away!!!!!!!!

Help, help, help i really do not know what way to turn and am so very confussed with it all and i also feel,very stupid.

thanks in advance for any help.

Hully

isobelle

Sorry to be nosey but is it absolutely essential you move out of your sister's place? I know sometimes relatives can be too close for comfort though...and we all need our own space.

josephine82

Hi!
I would advise that you complete the calculator in this link, and then post the results back on this thread:

www.makesenseofcards.co.uk/soacalc.html

This will help us see exactly what the situation is, and be able to help/advise.

Thanks

Jo

Tixy

Hi Hully and welcome to MSE

I would agree with Jo, do a financial statement of affairs as you are now and then work out how it would differ if you rented your own place.
Have you researched the cost of renting a place (and all the associated costs) compared to what you are contributing to your sister?

If you decide to rent a place but cannot afford all your debt repayments then you will almost certainly affect your credit rating. You could consider the option of a DMP (whereby you pay less than the minimum payments) but this will have a long term effect on your credit rating.

Perhaps you could look at spending say 6months where you are and really cutting back on all luxuries and throwing every available bit of money on your debts. If you could clear a chunk off your debts this might make renting more financially viable.

Also you could research more into bankruptcy and whether there would be a problem regarding the house. You could speak to one of the free debt advisors on this list - http://www.moneysavingexpert.com/loans/debt-help-plan#help or even ask on the bankruptcy board here as someone else may have had a similar experience.

Hully

Dear all.

Many thanks for your replies, i know that getting my own place will be a much better thing for me and my mental health. My sister has been a truly great help to me but she lives in Norlfolk and my word is in the Midlands mainly Birmingham and surrounding areas, hence why i need to move. i am able to stay with my Partners Mother but that too is a massive mental strain.

I have spoken to Payplan today and they were very good, i told them that i wanted to get my own place and they said if i did that to call them back once i knew all my new out goings and they would then work it all out again.

I know that i may be sounding daft but having my own place would be a great help and releive lot's of stress and driving. I also have my 2 sons every other weekend to stay it would be nicer for them also of course, we did have a house that we rented but had to moved out in March this year.

anymore thoughts would be taken with open eyes.

thanks again to you all.

Hully